Leaders of Canberra's business community have called for a complete review of workers' compensation schemes, days after the ACT Government announced it would withdraw from the troubled federal insurer Comcare.
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The ACT's 20,000 public servants look set to be insured through a new stand-alone scheme as the ACT faces a premium bill approaching $100 million and some workers being paid generous compensation benefits while their claims take years to be resolved.
Figures released by ACT Employment Minister Mick Gentleman last week showed of the 531 current territory claims, only 45 were less than one year old.
More than 200 of the claims date back a decade and about 150 workers received replacement wage payouts for claims that are between one and five years old.
Mr Gentleman estimated the savings to the ACT taxpayer could reach as much as "tens of millions" of dollars from the creation of the new scheme. He said Comcare took too long to finalise some claims and get employees back to work.
Canberra Business Chamber chief executive Chris Faulks said private and community sector employers also faced "spiralling" premium costs and a complete review of arrangements in the ACT could be needed.
Business owners could be forced to cut jobs if the increasing cost continued Ms Faulks warned.
"It would be a slap in the face to the private and community sectors if the ACT Government limited its reform agenda to bring down costs for itself and leave the business and community sectors stranded with a system that is fundamentally flawed," she said in a statement.
"We would welcome the opportunity to work with the ACT Government along with other important stakeholders to look at developing a scheme that is fairer for all, especially those people suffering genuine injury and illness."
The ACT's insurance premiums have nearly doubled in the past nine years, reaching $97 million in 2014-2015. Australian Public Service departments are reportedly unhappy with Comcare's costs and Mr Gentleman confirmed a private underwriter would back the new venture.
Ms Faulks said the impact of high premiums, long delays in resolving claims and some dubious payouts had been felt the hardest in private businesses and some community organisations.
A new ACT system would place time limits on payments to workers for medical treatment and allow them to step outside the scheme and sue the government in court for lump sum compensation.
Mr Gentleman said there would be no compensation for non-economic loss, described as "pain and suffering" and claims already before Comcare would be resolved through existing arrangements.
"The ACT government will continue to work with the Canberra Business Chamber to examine their concerns with the existing private sector scheme," he said on Monday.
"The current review is limited to the public sector. Any private sector reform would need to be consulted on separately as private and public workers compensation schemes are currently very different in terms of both design and affected stakeholders."
Unions have backed the change, but ACT Opposition industrial relations spokesman Brendan Smyth said the government was not serious about the planning required for a new scheme.
ACT Law Society president Martin Hockridge called for careful consideration before any change.
"The society is concerned that the move does not result in a scheme that is worse for injured workers," said Mr Hockridge.
"We would support bringing the ACT's public sector workers under the existing private sector workers' compensation arrangements rather than establishing a new and separate scheme.
Mr Hockridge said the decision to move from Comcare to a more responsive and efficient workers compensation scheme was welcomed.
